Trade The News Market Internals Update at 12:00ET

Dow -60 S&P -5.5 NASDAQ -9.25

***Economic Data***

– (RU) Russia Oct Producer Prices M/M: 1.7% v 0.5%e; Y/Y: 17.5% v 17.1%e
– (IR) Ireland Oct Consumer Confidence: 63.7 v 53.3 prior
– (PE) Peru Sept GDP Y/Y: 5.8% v 6.3%e
– (PE) Peru Oct Unemployment Rate: 7.3% v 7.2%e
– (US) ICSC/GS weekly chain store sales w/e Nov 12th: +0.3% w/w; +3.1% y/y
– (PD) Poland Oct CPI M/M: 0.7% v 0.4%e; Y/Y: 4.3% v 4.0%e
– (PD) Poland Sept Current Account: -€1.9B v -€1.8Be; Trade Balance:-€ 454M v -€587Me
– (US) Oct Producer Price Index M/M: -0.3% v -0.1%e; PPI Ex Food & Energy M/M: 0.0% v 0.1%e
– (US) Oct Advance Retail Sales: 0.5% v 0.3%e; Retail Sales Less Autos: 0.6% v 0.2%e; Retail Sales Ex Auto & Gas: 0.7% v 0.2%e
– (US) Nov Empire Manufacturing: +0.61v -2.00e
– (CA) Canada Sept Manufacturing Sales M/M: 2.6% v 1.3%e
– (US) Redbook Retail Sales w/e Nov 12th: +3.2% y/y; Nov MTD: +1.5% v Oct
– (PD) Poland Oct YTD Budget Level: -22.5B v -21.9B prior; Budget Performance YTD: 56.1% v 54.5% prior
– (US) Sept Business Inventories: 0.0% v 0.1%e
– (EU) ECB drained €187.0B vs. €187.0B targeted in 7-day Term Deposit Facility

– Events in Europe continue to mute any risk appetite this morning, despite two relatively positive US economic data reports. The November Empire Manufacturing survey delivered its first positive reading since May of this year, while the October retail sales report was a bit better than expected, extending a several months of tepid but sustained growth. In Italy, PM designate Monti continued to negotiate with political partners about forming a cabinet, however vague rumors of an impending multi-notch ratings downgrade ensured that Italy remained a source of stress. The Italian 10-year yield moved back above the pivotal 7% level and yields on other AAA-rated countries felt the effects, as France, Austria and even Finland saw sharply higher yields. Fed speakers were out in force this morning, with Bullard, Evans and Williams all making comments; note that Fisher spoke last night. Treasury markets are bid keeping the 10-year yield right at 2%.

– A selection of major retailers has reported quarterly results this morning. Walmart missed profit targets by a hair, while revenue was slightly better than expected. Comps improved over last quarter’s showing, although the firm’s comp guidance for next quarter does not forsee much further improvement. Home Depot beat expectations, hiked its quarterly dividend and tweaked its FY11 outlook slightly higher. Comp sales growth was strong. WMT fell more than 2%, while HD was in the red. Earnings at high-end retailer Saks beat expectations, while discount retailer TJX was right in line. SKS gained 3%, while TJX fell 1%. In other earnings, Beazer Homes’ quarterly loss was greater than expected (thanks to some one-time charges), while revenue beat estimates. Unlike with other homebuilders, some of metrics Beazer generated were weaker, with the backlog shrinking on a sequential basis and the cancellation rate higher on a y/y basis. Healthcare products provider Covidien modestly topped estimates and reiterated its prior guidance. In other news, LDK solar slashed its guidance for Q3, in line with moves by other solar industry firms. LDK fell more than 10%, before bouncing right back to -3%. And Symantec sold its 49% stake in the Huawei Symantec joint venture to Huawei for $530M.

– The New York morning saw a continued test of the ECB’s resolve to containing widening bond spreads in the euro zone. The technical price action for the Euro saw some technical headwinds, particularly in the EUR/JPY pair at the 104.70 level. The inability for the cross to regain a foothold above that level could have it test the parity level. Precious metals did reverse their earlier soft tone to trade back in positive territory as the USD saw its best levels erode during the NY morning. EUR/USD was around 1.3504 mid morning.

***Looking Ahead***

– 11:00 (US) Fed Fisher on CNBC
– 11:00 (US) Fed to purchase $4.25-5.00B in Notes/Bonds
– 11:30 (US) Treasury to sell 4-Week and 52-week Bills
– 11:30 (IS) Israel Oct Consumer Prices M/M: +0.2%e v -0.2% prior; Y/Y: 2.8%e v 2.9% prior
– 12:30(US) Fed’s Fisher speaks on Too Big to Fail in New York
– 16:00 (CL) Chile Central Bank Interest Rate Decision: Expected to leaves the Nominal Overnight Rate Target unchanged at 5.25%
– 16:30 (US) Weekly API Energy Inventories

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